After what we saw in the markets over the last week or so, it’s looking like economic growth and rip-roaring inflation (in no small part due to the massive amounts of money printing and record levels of credit creation) might arrive sooner than anyone thought just a month or two ago. Reuters reports on the latest concerns voiced by China.
China’s central bank said on Friday that it expected the dollar to strengthen this year, but it raised the specter of worldwide asset bubbles and inflation.
In a lengthy report on the global financial markets, the People’s Bank of China also warned that huge, hidden bank bad loans in the West could pose a threat to the global economy.
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The central bank said the ultra loose monetary policies, including quantitative easing adopted by major central banks, had pumped huge liquidity into the global financial markets.“Once the real economy turns better, the massive liquidity being released out will definitely add to inflationary pressure,” the bank said.
“It is an urgent task faced by central banks in the world to avoid the forming of asset bubbles and inflation.”
Curiously, the bank said that they expect higher oil prices this year but didn’t think much of the prospects for gold to go much higher. At first it might seem odd that any central bank would comment on the gold price, but, when you consider that the central bank in China wants to buy thousands more tonnes of the stuff, their comments make a lot more sense.
King World News today received more detail about yesterday’s attack on its Internet site, which happened soon after the posting of Eric King’s half-hour interview with GATA Chairman Bill Murphy, board member Adrian Douglas, and your secretary/treasurer about last week’s hearing of the U.S. Commodity Futures Trading Commission.
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